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Rio de Janeiro plans sewage treatment PPP

Bnamericas Published: Tuesday, January 08, 2019
Rio de Janeiro plans sewage treatment PPP

The city of Rio de Janeiro plans to publish this month a notice regarding an auction for a sewage treatment concession in the Barra, Recreio and Jacarepaguá neighborhoods.

The 30-year PPP would be for an area considered profitable for such a service, according to O Globo newspaper.

Currently the service is provided by state utility Cedae and the decision to award a concession could result in a legal battle involving the city hall and the company.

According to the report, Cedae has the right to provide services in the area until 2057. However, Rio de Janeiro mayor Marcelo Crivella is looking at terminating the contract as the company is not following the original program, resulting in environmental damage due to the poor quality of service, the paper said.

Revenue under the concession is estimated at 26bn reais (US$6.97bn), while the mayor wants to demand a payment of at least 350mn reais for the contract.

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